Crypto scams are on the rise and since the market is not regulated many victims struggle with their losses. It is also hard to obtain accurate data and the scammers are aware of the digital money market weaknesses.
Identifying a crypto scam might not be easy but you can notice the signs before you get scammed. If you have not fallen for their tricks, do not count yourself lucky, the scammer is lurking in every corner and here are some tips to avoid being a victim.
Scams You Never See Coming
If you are offered quick and huge profits with a lot of insistence, think twice. This might lead to losing your funds of you could lured into an identity theft trap. Some of these scammers are disguised using a brand name similar to a high profile coin, exchange or a trading platform.
ICOs are another fertile grounds scammers’ use; out of every five token offers, four are scams according to Nouriel Roubin, a US economist. However, there are countries that are known to run such scams including China, Russia and Georgia.
New crypto users are also a good target for the scammer and are enticed with crypto asset scams. When the crypto market is bleeding, many traders try to dispose of their digital assets to exit the market and hide in the fiat economy and here they target new users who soon realize they bought cons whose value is headed south.
Customer reward systems, Ponzi or pyramid schemes are also popular with crypto scammers. These are popularized by the thought of earning huge sums within a very short time. Before you know it, the scammer has already accumulated millions of dollars through referrals and disappears in thin air.
How to Avoid Crypto Scams
The fear of missing out from the crypto hype is the major cause of scams in the industry. Cryptocurrencies are risky, they thrive on investors who are not crypto aware and the best way to avoid being crypto scammed it to do a proper background check before jumping into any scheme of project.
Crypto and blockchain transactions are irreversible and anonymous and you cannot request a reversal and you hit the sent button. Safety on crypto begins and ends with you, if you expose yourself to the scammer, you will be hit really hard.
